My Watchlist [84]: PLTR... Pullback to 18.22? (SELL)

Hi everyone! Today I’ll be updating my TA for another retail darling:

Palantir Technologies Inc. (NYSE: PLTR)

I nailed the end target for this move, as PLTR strongly rejected the 27.11 level (refer to Watchlist [36]). The stock is now in danger of forming a larger weekly bearish divergence pattern that could see a deeper pullback.

I have marked out 3 major levels that were prior resistances, namely 21.85, 20.24 and 18.22. All 3 levels were strong support levels in 2021, but soon turned into overhead resistances between 2022-2023. Interestingly enough, all 3 levels also happen to rest near the 50%, 61.8% and 78.6% Fib retracements respectively, given a swing high of 27.50 and a swing low of 15.66.

The potential saving grace for PLTR? The possibility of a third leg of hidden bullish divergence on the weekly. Divergences are not absolute. However, the 18.22 level was major resistance for 6 months. Given past historical price action on PLTR, it has an innate tendency to retest and base at prior resistances.

On the daily chart, we could see price action similar to the last pullback from the swing high of 21.85 - an orderly sell-off.

That would set the stage for the next leg higher, which is likely to see 29.29 (prior resistance) and the only remaining overhead gap between 30.44-31.34 retested.

However, for now, it has to get through a steady pullback. I will update my charts again if I see anything significant, or if there are recent developments that invalidate my thesis.

Sentiment: SELL

Summary (with Price Targets - NFA):

Weekly bearish divergence setup with a strong rejection at 27.11 that should see a resistance-to-support flip at 18.22. However, do keep a close eye on 21.85 and 20.24 as well, as they could provide tradeable bounces for the short-term.
Investors can consider trimming positions at current levels, or hold tight and average down on dips towards 18.22.

Alright, that’s all for this newsletter. Till next time!

$Palantir Technologies Inc.(PLTR)$ $ARK Innovation ETF(ARKK)$ $Shopify(SHOP)$ $UiPath(PATH)$ $Roku Inc(ROKU)$

@TigerStars @TigerEvents @CaptainTiger @TigerWire @MillionaireTiger

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My Watchlist [84]: PLTR... Pullback to 18.22? (SELL)

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